WTI Oil extends gains as prolonged Hormuz closure reinforces supply shock

💡 DMK Insight

WTI oil’s surge to $98.00 is a crucial signal for traders: here’s why. The recent 3.21% jump marks WTI’s highest price since mid-April, suggesting a strong bullish momentum. This spike could be attributed to ongoing geopolitical tensions and supply constraints, which are likely to keep upward pressure on prices. For day traders, this level is critical; breaking above $100 could trigger further buying, while a pullback below $95 might signal a short-term reversal. Keep an eye on the daily chart for potential resistance at $100 and support around $95. But don’t overlook the broader implications. A sustained rise in oil prices could impact inflation rates and, consequently, central bank policies. If inflation continues to rise, we might see a shift in interest rate expectations, affecting not just oil but also equities and currencies. Watch how major players react—if institutions start accumulating positions, it could signal a longer-term bullish trend. For now, monitor the $100 resistance closely; a breakout could lead to a significant rally.